India and Nepal have agreed to a new air services agreement (ASA) with a view to modernise and update the existing ASA based on the ICAO template, following discussions last year.
Both the countries are now entitled to designate any number of airlines for operation of mutually agreed services for which the respective country shall grant appropriate authorisation and permission. The new ASA also includes various specified fifth freedom traffic rights.
The designated airlines of each country are entitled to operate any number of all-cargo services between each other’s territory with any type of aircraft with full 3rd, 4th and 5th freedom traffic rights. Such all-cargo services may also be operated under co-operative marketing arrangements such as code sharing, blocked space etc.